Online travel agents liable to deduct 1% TCS under GST

As per the PTI report, travel agents providing online ticketing and other services will be liable to deduct 1% tax at source under the GST regime as they have been classified as e-commerce operators, the Central Board of Excise and Customs (CBEC) said on Tuesday. Under the Goods and Services Tax (GST) regime, an e-commerce operator is required to collect 1% of the net value of taxable supplies made through it. The amount so collected is called tax collected at source or TCS but this provision has been kept in abeyance for the time being. Online travel agents have been classified as e-commerce operators (ECO) and so they have to deduct TCS.

CBEC, in a fresh set of frequently asked questions (FAQs), said the TCS requirement would not apply to someone selling own products through a website. Only applicable GST for the goods would be levied in that case. Electronic commerce or e-commerce means supply of goods or services, including digital products, over electronic network and an e-commerce operator is a person who owns operates or manages the electronic platform fore- commerce, it said. “Online travel agents providing services through digital or electronic platform will fall under the category of ECO (e-commerce operator) liable to deduct TCS under Section 52 of the CGST Act, 2017,” the CBEC said.